Mitsubishi Corp., Swiss-based healthcare equipment provider Nobel Biocare and US semiconductor makers Applied Materials and Micron Technology have been dropped from the FTSE4Good Index for failing to meet environment or social criteria required to remain on the series of ethical investment stock market indices.
The FTSE4Good, which was launched in 2001 by FTSE Group, identifies on a semi-annual basis businesses that meet globally recognized corporate social responsibility standards. Mitsubishi was removed from the index for failing to meet climate change criteria established by the index. Applied Materials and Micron Technology didn’t meet human and labor rights criteria, while Nobel Biocare was dropped for not meeting environmental management standards.
In its semi-annual review, the index added 20 companies including US businesses ADT Corp., Iron Mountain, Salesforce.com, Union Pacific Corp., real estate investment trust Ventas and healthcare care equipment and services provider Wellpoint.
The FTSE4Good criteria evolves over time, demanding companies continue to make improvements in environmental and social practices in order to maintain or gain inclusion. Changes to the index will be effective after the close of markets March 15.
Other additions to the index include REITs Shopping Centres Australasia Property Group and Link Real Estate Investment Trust, Canadian bank Toronto-Dominion, NH Hoteles, aerospace company Cobham, food producers Devro and pharmaceutical firm Vectura Group.
Of the new additions to the index, six are from the US, four companies are from the UK, three are from Japan and two from South Korea. Australia, Canada, Hong Kong, Israel and Spain each had one company added to the index.
In its previous semi-annual review, released last September, Coca-Cola Amatil, Suncorp Group, DirecTV, chemical company Ecolab, food producer Hillshire Brands and jewelery retailer Tiffany & Co. were among 21 companies added to the index. In the September review, the index dropped seven companies, including Ageas, Dr Pepper Snapple and Pendragon, for not meeting environmental management criteria.